Legal Definitions - leaseholder royalty

Leaseholder royalty is a payment made by a tenant to the owner of a property for the right to use that property. This is similar to landowner's royalty, which is paid by someone who wants to extract resources from the land.

For example, if a business wants to rent a storefront, they would pay a leaseholder royalty to the owner of the building. This payment gives them the right to use the space for their business.

Leaseholder royalty is different from established royalty, which is a set price that has been agreed upon. In cases where there is no established royalty, a court will determine what a reasonable royalty would be.

Reasonable royalty is the amount that a licensee would be willing to pay the holder of the intellectual property rights while still making a reasonable profit from its use. This standard is often used to determine damages in cases of patent, copyright, or trademark infringement, or for misappropriation of trade secrets.

For example, if a company is found to have infringed on a patent, they may be required to pay a reasonable royalty to the patent holder as compensation for their use of the patented technology.

Overall, leaseholder royalty is a payment made by a tenant to the owner of a property for the right to use that property, while reasonable royalty is the amount that a licensee would be willing to pay the holder of intellectual property rights for the use of that property.